Sandridge Energy, Inc. Files For Bankruptcy in Houston, Texas

On May 16, 2016, Sandridge Energy, Inc. and certain of its affiliates (collectively, “Sandridge” or the “Debtors”) filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of Texas, Houston Division. According to the declaration of Sandridge’s Chief Financial Officer, Julian Bott (the “Bott Declaration”), Sandridge has entered into a restructuring support agreement with holders of more than 79% of its secured debt and 55% of its unsecured debt. The agreement contemplates a plan that would include, among other things, a debt-for-equity conversion.  See Bott Declaration at 65-66.Debtors are an oil and gas exploration and production company with operations in Oklahoma, Kansas and Colorado.  Debtors have interests in approximately 4,300 gross producing wells, and approximately 2,063,000 acres under lease.  See Bott Declaration at 25.Debtors’ liabilities total approximately $4.2 billion in funded debt obligations which include: (i) $460 million pursuant to a 2015 Lien Credit Agreement with  Royal Bank of Canada, as administrative agent; (ii) $1.3 billion pursuant to 2015 Second Lien Notes with U.S. Bank National Association, as indenture trustee; (iii) $2.2 billion pursuant to several senior unsecured notes with Wells Fargo Bank National Association, as indenture trustee; and (iv) $88 million pursuant to certain indentures with U.S. Bank National Association, as indenture trustee.  See Bott Declaration at 42-48.The Debtors cases are jointly administered under the lead bankruptcy case In re Sandridge Energy, Inc., et al., Case No. 16-32488.A copy of the Bott Declaration can be accessed here: Download Bott Declaration.For further information, please contact a Thompson & Knight Bankruptcy and Restructuring Attorney. For more information on the Thompson & Knight’s Bankruptcy and Restructuring Practice, please visit www.tklaw.com/bankruptcy-and-restructuring/.